Market Focus

US markets were flat on Monday ahead of quarterly earnings reports from several technology companies. The Dow Jones Industrial Averages climbed 82.76 points. The S&P 500 added 0.24% while the Nasdaq 100 closed with 0.03% higher. Notably, Tesla Inc. was among those companies providing the largest boost to the S&P 500. Tesla extended gains in the post-market after the earning report beat the estimates. Later this week, several heavy-weighted companies including Apple Inc., Amazon. com Inc. and Alphabet Inc. are going to propel the benchmark indices.

Bitcoin surged to near $40,000 as the rumor over Amazon.com Inc.’s involvement in the cryptocurrency industry. The furious up- surge was mostly driven by over-leveraged shorts. The surgeon Monday brought crypto markets back to life after the market has been stuck in the doldrums for months.

China’s new rules in the private tutoring industry have left private education firms confronting a significant impact as the Chinese government steps up regulatory oversight. Under the new regulation, all institutions offering tutoring services will need to be registered as non-profit organizations. With the new rule, it has put at risk billions of dollars of public and private capital plowed into the educational sector. As a result, it triggered a massive sell-off. China’s education industry sub-index dropped as much as 14% on Monday.

Main Pairs Movement

As the greenback started with a soft tone, EURUSD climbed 0.30% on Monday, reaching an intraday high of 1.1816, closing with 1.18020. The cautious move took over the market ahead of the US first-tier economic report later this week.

GBPUSD edged higher, closing with 1.38187. The British Pound benefitted from last week’s reduction in the pandemic cases while the greenback had a softer tone. However, Brexit woes and cautious sentiment ahead of the week are still challenges for the pairs.

The precious metal, gold, retreated below $1800 as the markets embraced the week’s key data and firmer US Treasury bond yields. In the meantime, gold prices would be vulnerable as the markets are going to guess the outcome of the FOMC meeting that will happen later.

Technical Analysis

GBPUSD (4-hour Chart)

Sterling rises to one week fresh high near 1.3835, the highest level since July.16, then slips nearly market close at 1.3818. moreover, highs versus dollar, euro, and yen as well. The DXY index fell by 0.36% as of writing, under 92.60 while U.S. 10 years Treasuries yields moved off lows. In the meantime, the market is expecting risk appetite return as optimistic mood.

For technical aspect, RSI indicator close around 64 figure which suggest bull guideline extend recently momentum and expect the market will head to the higher stage at least short term. For moving average side, 15 long SMA indicator continuing its ascending momentum while 60 long SMA indicator remaining a slight upside but seems flat movement, furthermore the long and short one has a golden cross.

On the south way, If the market fell below the support level, we expect the market will head to 1.3665.

Resistance: 1.3896

Support: 1.36, 1.3665, 1.3745

 

XAUUSD (4- Hour Chart)

Gold still dismay and struggle to get the upside traction at the start of the week. The gold was headed for the daily close below the psychological level of $1800 at 1797 at end of the day. Forthcoming day, the investor will try to analyze the outcome of the FOMC meeting that kicks off on Tuesday and concludes with the Fed’s chairman press conference. From the technical perspective, the RSI indicator settles at 40.8 figures as of writing, suggesting bearish movement ahead. For the moving average side, 15 long SMA indicator shows the slightly upper way and 60 long SMA remained flat.

In light of the aforementioned, we expect the gold market will high probability struggle in a consolidation range. On the downside, we expect 1795 will be powerful support. If the market penetrates the first immediately support, it would move to lower lows which eye on 1765.5 level. On the up way, 1811 around shows price cluster resistance as a first pivotal checkpoint.

Resistance: 1811, 1830.5

Support: 1795, 1765.5

 

EURUSD (4- Hour Chart)

Eurodollar pair hovered around 1.18 level after approaching at 1.1816 the highest peak in the day market. The strong euro-dollar with positive intraday bias amid a weaker US dollar across the broad while US shares market is challenging record high. For the technical side, the RSI indicator set 58 figures suggesting a bull traction guidance for the short term. For moving average perspective, 15 long SMA indicator moving in a flat with modest momentum in recent, but 60 long SMA remaining descending movement.

Following the recent suggestion, the euro dollar has stood above the 1.1804 level, a critical resistance level as a price pattern. For now, the most important thing for euro fiber is to defend against current momentum. if the price could propel to higher than the next price level would eye on 1.1848~1.188. In contrast, we expect 1.1804 to become the short-run pivot support. If the market reverses to the down way the first support, it would fall into a quagmire between 1.1766 and 1.18040 as tiny volatility.

Resistance: 1.1848, 1.188

Support: 1.1804, 1.1766, 1.17